Feds to bail out CIT?

TLGP or other aid for CIT?

We know Goldman doesn't have any "exposure" to CIT, yet they and Wells gave CIT funding last year. We also know CIT paid down $2.1 billion of credit lines in April, and that after the $2.33 billion of TARP money came in, CIT retired $2.4 billion of bonds.

Geithner and the FDIC dragged their asses regarding the TLGP (Temporary Liquidity Gaurantee Program) and Section 23A asset transfer, with CIT, even though they had their buddies issue $333 billion of debt with ithe TLGP. I suppose those companies that do vendor financing, import/export, LOC, DIP, asset backed loans, student loans, trade, corporate, acquisition and expansion finacing, and railroad, aerospace and defense funding instead of swapping Government bonds and ETF's with one another, isn't a business that Geithner understands.

CIT is the largest SBA lender in the country; a niche that the banks would probably like to get involved in, when the banks "decide" to get back in traditional lending; obstensibly only after the Fed allows their balance sheets to be repaired with a zero cost of money!

Bottom line is the TLPG would immensely help CIT. Whatever your opinion of CIT's lending is, at least they are honest in presenting their financials.

And I think that was the problem.

Geithner's pals, hide assets in Level III and never value it at fair value, and it seems, never mark down a security, unless they are buying it from the Government (as in JPM's TARP warrants, and the Bear Sterns dreck they took on).

Call me a socialist, but I think CIT should be helped.

Especially since the boys in Washington don't see why they should.

(disclosure: friends long a few hundred thousand shares)